Tailored credit cards for you
Are you looking for a new credit card to spread the cost of a sizeable purchase or to help build or repair your credit rating? Perhaps you’d like to move an existing balance onto a card with a lower interest rate? Or, could you be in the market for a card that comes with added perks such as cashback or air miles?Access tailored credit cards
Tailored credit cards explainedRegister with Credit Angel for a free 30-day trial of our credit report service and you can also take advantage of our tailored credit card matching. We’ll ask you to enter a few short details about what type of card you’re looking for and combine you answers with data from your credit report to quickly match you with products tailored to your needs. You’ll be able to review credit cards you’re likely to be accepted for, allowing you to compare what’s on offer without the need for multiple credit searches that could harm your credit rating. So, unless you choose to make a direct application to a lender, there’s no footprint left on your credit report. Sounds simple, huh? We think so.
Credit Angel tailored credit cards
Advantages of credit cardsBefore you press the button to fire up your tailored search, it’s good to take a moment to think about how a credit card could benefit you, so you’re clear on what you’re looking for. Using a credit card comes with a range of benefits but depending on your ability to manage your finances it can carry risks too, so let’s take a look at some of the universal and common benefits of credit cards to start.
Buy now, pay laterBeing able to purchase or pay for something you’d otherwise need to spend time saving for can come in really handy. A credit card can provide a safety net in emergencies or help you spread the cost of larger items that you need or would like to buy now.
Can be interest freeWhen you borrow on a credit card providing you pay off your balance in full, and on time, you don’t need to pay any interest. However, you should be aware there are some exceptions to this. For example, if you use your card to withdraw money from a cash machine you will be charged interest from the day of withdrawal, which is likely to be at a higher rate of interest than spending on the card. Using your card in this way is also viewed negatively by lenders, so it’s best avoided.
Consumer protectionSpending on your credit card comes with some superb and often overlooked consumer protection in the form of Section 75 of the Consumer Credit Act. This legislation makes your credit card provider jointly responsible with the retailer or service provider you buy from. The protection kicks in if you use your card in payment or part payment for goods costing £100 to £30,000. Be aware, this applies only if a single item is worth this amount. If a retailer fails to supply something you’ve ordered, or you receive faulty goods you could call on your credit card provider to issue a refund or fund a repair if the retailer goes bust or won’t cooperate.
Spending perksTo persuade you to pick and use their credit card above other options, some credit card providers offer products that come with benefits such as receiving a percentage of your spending as cashback or earning points or air miles as you spend. These types of cards sometimes come with minimum spending levels or annual charges but if you’re paying your full balance off each month and able to meet the limit, you could be quids in.
Balance and money transfersNot all credit cards are designed for spending. Some card providers will give you a lump sum of cash back if you transfer a balance onto your card or use a money transfer card to move money into your bank account within a specific time period. Even if there’s no lump sum you may be able to save money servicing existing debt by making a sensible switch. If you’re signing up to a card to take advantage of perks or a special offer, be sure to know how and when they apply and balance your potential earnings against any cost of credit such as interest and annual or monthly fees.
Convenient to useCredit cards are widely accepted and have some fraud protection built in, which can make them the sensible choice for spending online or abroad. Some credit cards are even tailored to those who travel a lot and will offer lower rates and charges for use abroad compared to regular credit cards. If you’re worried about losing your credit card or having it stolen, your credit card isn’t connected to your bank account, so you won’t risk your current account being frozen. And, providing you haven’t been negligent you usually won’t be held liable for fraudulent debts either. For extra protection, our credit monitoring service could help you spot identity theft and fraud attempts.
Can help to build and repair creditManaging a credit card well is likely to have a positive impact on your credit score. Prove to lenders that you can be trusted to stay in control of borrowing by consistently paying your account on time and you could put yourself in a better position for other future credit applications.
What is a credit score?
Disadvantages of credit cardsUsing a credit card is not without its risks. If you’ve experienced trouble managing borrowing in the past, you should think hard about whether a credit card could prove too much of a temptation for you. If you’d like a credit card to help prove you’ve overcome past issues, to provide peace of mind, you could set a lower limit with your provider. Don’t forget to set up a direct debit to ensure you always make your payments on time too. Here are some other things you need to remember:
Debt can build quicklyBecause of the way credit card interest is calculated through compound interest, it’s easy for debts to mount quickly on cards with higher interest rates. Similarly, if you have a high balance you can find your debt builds quite quickly even if you have a moderate interest rate. If you find yourself using your credit to regularly plug a gap in your monthly budget it’s time to examine your finances more closely so that things don’t spiral.
Late payments can cause problemsFail to make payments on time you could be landed with charges from your card provider and a mark on your credit file that shows for six years. You could also lose any special interest rates on your account.
Rates can go upUnless you have an interest rate fixed for a specific period, if interest rates go up, you could find your credit card provider proposes a new rate of interest to you. While you’re not obliged to accept the new rate, you will need to if you want to continue to use the card. This could impact on your wider budget and make it harder to manage your finances and pay off your debt.
At Credit Angel, we act as a financial broker so we’re able to bring together products from lots of different lenders. We use the information you provide and data we hold about you to match you with products that meet your needs and highlight deals you’re most likely to be accepted for. However, it’s worth remembering that not all applicants will be accepted for the most attractive headline rates advertised. By law, over 51% of successful applicants access the interest rates advertised but if you are accepted for a card you could be offered a different interest rate or in the case of interest free deals, be granted a shorter interest free period.
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